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Part 3. Submission Processing

Chapter 12. Error Resolution

Section 12. Exempt Organization Returns (Cont. 30)

3.12.12  Exempt Organization Returns (Cont. 30)

3.12.12.84 
Form 4720
General

3.12.12.84.14  (01-01-2009)
Field 01-L
Foreign Foundation Code
1 Position

  1. Field 01-L, Foreign Foundation Code, is transcribed from the right of Question A, Form 4720, page 1.

  2. Valid Foreign Foundation Codes are:

    • Blank—if neither box is checked or if Field 01-E, Computer Condition Codes, contains CCC "G" .

    • Code 1—if the "Yes" box is checked.

    • Code 2—if the "No" box is checked.

3.12.12.84.14.1  (01-01-2009)
Field 01-L
Invalid Conditions/
Correction Procedures

  1. This field will asterisk if other than "1" or "2" .

  2. Enter the correct code per Question A.

3.12.12.84.15  (01-01-2009)
Field 01-M
Penalty and Interest Code
1 Position

  1. Field 01-M, Penalty and Interest Code, is edited on the dotted line in Part I, Line 3, Form 4720.

  2. Valid Penalty and Interest Codes are:

    • Blank—normal penalty and interest

    • Code "1" —there is precomputed penalty and/or interest on the return and the Received Date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

3.12.12.84.15.1  (01-01-2009)
Field 01-M
Invalid Conditions/
Correction Procedures

  1. This field will asterisk if:

    • Other than "1" .

    • The Code is "1" and Field 01-F, Received Date, is equal to or before the Return Due Date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Correct Penalty and Interest Code field if:

    • It is other than " 1" .

    • There is precomputed penalty and/or interest on the return, and

    • Field 01-F is≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  3. Delete the Penalty and Interest Code field if:

    • There is no precomputed penalty and/or interest on the return or

    • Field 01-F is before the Return Due Date≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  4. Note: CCC "R" must also be present if Penalty and Interest Code "1" is correct and if precomputed interest, but not precomputed penalty, is on the return.

3.12.12.84.16  (01-01-2009)
Field 01-N
Chapter 42 Code
1 Position

  1. Field 01-N, Chapter 42 Code, is transcribed from the right of Question B, Form 4720, page 1.

  2. Valid Chapter 42 Codes are:

    • Blank—if neither box is checked or if Field 01-E, Computer Condition Codes, contains CCC "G" .

    • Code 1—if the "Yes" box is checked.

    • Code 2—if the "No" box is checked.

3.12.12.84.16.1  (01-01-2009)
Field 01-N
Invalid Conditions/
Correction Procedure

  1. This field will asterisk if other than "1" or "2" .

  2. Enter the correct code per Question B.

  3. If Question B (either "yes" or "no" ) box is checked and a statement describing detailed corrective action is not attached, correspond.

    1. If reply to correspondence indicates "not applicable" , blank Field 01-N.

    2. If no reply to correspondence, enter CCC "3" in Field 01-E and Correspondence Indicator "14" in Field 01-G.

    3. If partial reply to correspondence, enter CCC "3" in Field 01-E and Correspondence Indicator "12" or "13" in Field 01-G.

3.12.12.84.17  (01-01-2009)
Fields 01-O through 01-R

  1. Fields 01-O through 01-R are not used.

  2. If these fields asterisk, delete any entries.

3.12.12.84.18  (01-01-2009)
Field 01-S
Entity Underprint Code
1 Position

  1. Field 01-S is the Entity Underprint Code.

  2. This field will be used to clear the Name Control and Tax Period underprint, when the underprint and the error register field do not agree.

  3. This field will never asterisk.

    Caution:

    The error register will not clear until the correct code is used or the underprint agrees with the entry.

3.12.12.84.18.1  (01-01-2009)
Field 01-S
Correction Procedures

  1. Follow Name Control and Tax Period correction procedures in IRM 3.12.12.83.4.1 and Exhibit 3.12.12-17 ).

  2. If the error register field and the underprint still do not agree, enter one of the following codes as appropriate:

    • Code 1—To Clear Name Control Underprint.

    • Code 2—To Clear Tax Period Underprint.

    • Code 3—To Clear both Underprint fields. (Use only if both Name Control and Tax Period fields are underprinted.)

  3. If the correct code is not used or an invalid code is used, the record will loop with no change to the underprint fields.

3.12.12.84.19  (01-01-2009)
Field 01-T
Taxpayer Notice Code
6 Positions

  1. Field 01-T, Taxpayer Notice Code (TPNC), is entered on the error register to the right of Action Code "1" .

  2. A two-digit TPNC is used when a math error is present involving the tax liability or settlement amounts.

  3. The notice codes may only be used with A/C "1" , in which case the computer-generated figures are accepted as correct.

3.12.12.84.19.1  (01-01-2009)
Field 01-T
Invalid Conditions/
Correction Procedures

  1. Field 01-T will asterisk if not valid per IRM 3.12.12.67.19.2 below. If asterisk is present, determine the correct TPNC and re-enter with A/C "1" .

  2. If TPNC is correct, check for any uncorrected fields and correct. On next loop, re-enter TPNC with A/C "1 " .

  3. Never enter a correction to Field 01-T.

  4. The Notice Codes may only be used with Action Code "1" , in which case the computer-generated figures are accepted as correct.

3.12.12.84.19.2  (01-01-2009)
Field 01-T
Valid TPNCs

  1. Valid Taxpayer Notice Codes are:

    • Code 05—We found an error in the computation of your total tax.

    • Code 24—We found an error in the computation of your Lobbying Expenditures tax.

    • Code 90—Used when none of the codes above apply. TPNC 90 cannot be used with any other TPNCs.

  2. When TPNC 90 is used, you must attach Form 12648 with a math error explanation with the exact wording to be printed on the Math Error notice to the return.

3.12.12.84.20  (01-01-2009)
Form 4720
Section 02
Error Register Fields

  1. The chart below shows the Error Register Fields for Section 02 including Alpha Field Designator, title, location on return, and number of positions. Section 02 fields are variable length, dollars and cents, and all positive.

    FIELD TITLE LOCATION MAX LENGTH
    A Tax on Undistributed Income Part I Line 1
    Edited from Schedule B Line 4     		11
    B Tax on Excess Business Holdings Part I Line 2
    Edited from Schedule C Line 7     		11
    C Tax on Investments That Jeopardize Part I Line 3
    Edited from Schedule D Part 1 Column (e)     		11
    D Tax on Taxable Expenditures Part I Line 4
    Edited from Schedule E Part 1 Total Column (g)     		11
    E Tax on Political Expenditures Part I Line 5
    Edited from Schedule F Part 1 Total Column (e) Section 4955     		11
    F Tax on Disqualifying Lobbying Expenditures Part I Line 7
    Edited from Schedule H Part 1 Total Column (e) Section 4911     		11
    G Tax on Premiums Paid Part I, Line 8 11
    H Tax on Entering into a Prohibited Tax Shelter Transaction Part 1, Line 9
    Edited from Schedule J Part I, Total Column (h) and/or Part II, Total Column (d) Section 4965     		11
    I Tax on Taxable Distributions Part 1, Line 10 11
    J Tax on Unrelated Business Income, Charitable remainder Trusts Part 1, Line 11 11
    K Total Tax Part I Part I Line 12 13
      Total Tax Part 1 Underprint   13
    L Tax on Self-Dealing Part II-A Column (c) Total 12
    M Tax on Investments That Jeopardize Part II-A Column (d) Total 12
    N Tax on Taxable Expenditures Part II-A Column (e) Total 12
    O Tax on Political Expenditures Part II-A Col (f) Total 12
    P Tax on Disqualifying Lobbying Expenditures Part II-A Col (g) Total 12
    Q Tax on Excess Benefit Transactions Part II-A Column (h) Total 12
    R Tax on Prohibited Transactions Part II-A Column (i) Total 12
    S Tax on Taxable Distributions Part II-A, Column (j) Total 12
    T Tax on Prohibited Benefits Part II-A, Column (k) Total 12
    U Total Tax Self Dealer Part II-A Part II-A Column (l) Total 12
      Total Tax Self Dealer Part II-A Underprint   12
    V Excess of Grassroots Expenditures Sch. G, Line 1 12
    W Excess of Lobbying Expenditures Sch. G, Line 2 12
    X Excess Lobbying Expenditures-Tax Sch. G, Line 4 13
      Excess Lobbying Expenditures-Tax Underprint   13

  2. This section is required, unless one of the following conditions is present:

    • Field 01-E, Computer Condition Codes, contains CCC "G" or

    • Field 01-K, Audit Code, contains " 4" .

3.12.12.84.20.1  (01-01-2009)
Section 02
Form 4720
Invalid Conditions/
Correction Procedures

  1. Section 02 will be identified as extraneous with a pound sign (#) to the left of the section number if this section is present, and Audit Code "4" is present in Field 01-K.

    1. If "Substitute for Return Prepared by EO" is written across the top of the return, delete Section 02.

    2. If the Audit Code is correct, delete Section 02.

    3. If the Audit Code was entered in error, delete the entry in Field 01-K.

  2. Section 02 will display as a Missing Section if Audit Code "4" is missing and Section 02 is blank. It will be indicated by an asterisk to the left of the section number.

    • If Section 02 cannot be perfected from the return, enter Audit Code "4" in Field 01-K. Do not delete Section 02.

  3. Fields 02-F, J, P, Q, U, or W will asterisk if present and Field 01-L is "1" .

    1. Research to determine the taxpayers filing requirement and change Field 01-J if necessary.

    2. If research shows Field 01-J is not correct, enter the correct code in Field 01-J.

    3. If Field 01-J, Type of Organization Code, is correct, delete Fields 02-F, O, P, T or V.

  4. Fields 02-A, B, C, D, J, L, M or N will asterisk if present and Field 01-J is "2" .

    1. Research to determine the taxpayers filing requirement and change Field 01-J if necessary.

    2. If research shows Field 01-J is not correct, enter the correct code in Field 01-J.

    3. If Field 01-J is correct, delete Fields 02-A, B, C, D, L, M or N.

  5. Fields 02-A, E, F, O, P, Q, U, V or W will asterisk if present and Field 01-J is "3" .

    1. Research to determine the taxpayers filing requirement and change Field 01-J if necessary.

    2. If research shows Field 01-J is not correct, enter the correct code in Field 01-J.

    3. If Field 01-J is correct, delete Fields 02-A, E, F, O, P, Q, U, V or W.

3.12.12.84.21  (01-01-2009)
Field 02-A
Tax on Undistributed Income
11 Positions

  1. Field 02-A, Tax on Undistributed Income, is located in Part I, Line 1.

  2. This field may be present if Field 01-J, Type of Organization Code, is "1" .

3.12.12.84.21.1  (01-01-2009)
Field 02-A
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "2" or "3" .

  2. Correct any coding or transcription errors.

  3. If this field is blank and Part I, Line 1 is blank, the amount from Schedule B, Line 4, should be entered in Field 02-A. Otherwise leave blank.

  4. If the Organization Code is not "1" , there is an entry in Field 02–A and you cannot determine that the entry belongs in another field, correspond using Letter 2696-C.

3.12.12.84.22  (01-01-2009)
Field 02-B
Tax on Excess Business Holding
11 Positions

  1. Field 02-B, Tax on Excess Business Holding, is located in Part I, Line 2 of Form 4720.

  2. This field may be present if Field 01-J, Type of Organization Code, is "1" or "3"

3.12.12.84.22.1  (01-01-2009)
Field 02-B
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "2" .

  2. Correct any coding or transcription errors.

  3. If this field is blank and Part I, Line 2 is blank, the amount from Schedule C, Line 7, column (a), should be entered in Field 02-B. Otherwise leave blank.

  4. If the Organization Code is not "1" or "3" , there is an entry in Field 02–B and you cannot determine that the entry belongs in another field, correspond using Letter 2696-C.

3.12.12.84.23  (01-01-2009)
Field 02-C
Tax on Investments That Jeopardize
11 Positions

  1. Field 02-C, Tax on Investments That Jeopardize, is located in Part I, Line 3 of Form 4720.

  2. This field may be present if Field 01-J, Type of Organization Code, is "1" or "3" .

3.12.12.84.23.1  (01-01-2009)
Field 02-C
Invalid Conditions/
Correction Procedures

  1. This field is invalid if if Field 01-J, Type of Organization Code, is "2" .

  2. Correct any coding or transcription errors.

  3. If this field is blank and Part I, Line 3 is blank, the amount from Schedule D, Part I, column (e), should be entered in Field 02-C. Otherwise leave blank.

  4. If the Organization Code is not "1" or "3" , there is an entry in Field 02–C and you cannot determine that the entry belongs in another field, correspond using Letter 2696-C.

3.12.12.84.24  (01-01-2009)
Field 02-D
Tax on Taxable Expenditures
11 Positions

  1. Field 02-D, Tax on Taxable Expenditures, is located in Part I, Line 4, of Form 4720.

  2. This field may be present if Field 01-J, Type of Organization Code, is "1" or "3" .

3.12.12.84.24.1  (01-01-2009)
Field 02-D
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "2" .

  2. Correct any coding or transcription errors.

  3. If this field is blank and Part I, Line 4 is blank, the amount from Schedule E, Part I, Total column (g), should be entered in Field 02-D. Otherwise leave blank.

  4. If the Organization Code is not "1" or "3" , there is an entry in Field 02–D and you cannot determine that the entry belongs in another field, correspond using Letter 2696-C.

3.12.12.84.25  (01-01-2009)
Field 02-E
Tax on Political Expenditures
11 Positions

  1. Field 02-E, Tax on Political Expenditures, is located in Part I, Line 5 of Form 4720.

  2. Field 02-E may be present if Field 01-J, Type of Organization Code, is "1" or "2" .

3.12.12.84.25.1  (01-01-2009)
Field 02-E
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "3" .

  2. Correct any coding or transcription errors.

  3. If this field is blank and Part I, Line 5 is blank, the amount from Schedule F, Part I, Total Col (e), should be entered in Field 02-E. Otherwise leave blank.

  4. If the Organization Code is not "1" or "2" , there is an entry in Field 02–E and you cannot determine that the entry belongs in another field, correspond using Letter 2696-C. Photocopy the error register and send to the TE/GE EO Error Resolution Program Analyst at Mail Stop 1110.

3.12.12.84.26  (01-01-2009)
Field 02-F
Tax on Disqualifying Lobbying Expenditures
11 Positions

  1. Field 02-F, Tax on Disqualifying Lobbying Expenditures, is located in Part I, Line 7, of Form 4720.

  2. This field may be present for Type of Organization Code "2" only.

3.12.12.84.26.1  (01-01-2009)
Field 02-F
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "1" or "3" .

  2. Correct any coding or transcription errors.

  3. If this field is blank and Part I, Line 7 is blank, the amount from Schedule H, Part I Total Column (e), should be entered in Field 02-F. Otherwise, leave blank.

  4. If the Organization Code is not "1" or "3" , there is an entry in Field 02–F and you cannot determine that the entry belongs in another field, correspond using Letter 2696-C. Photocopy the error register and sent to the TE/GE EO Error Resolution Program Analyst at Mail Stop 1110.

3.12.12.84.27  (01-01-2009)
Field 02-G
Tax on Premiums Paid
11 Positions

  1. Field 02-G, Tax on Premiums Paid, is located on Form 4720, Part I, Line 8.

3.12.12.84.28  (01-01-2009)
Field 02-H
Tax on Entering into a Prohibitive Tax Shelter Transaction
11 Positions

  1. Field 02-H, Tax on Entering into a Prohibitive Tax Shelter Transaction,is located on Form 4720, Part I, Line 9.

3.12.12.84.28.1  (01-01-2009)
Field 02-H
Invalid Conditions/
Correction Procedures

  1. Correct any coding or transcription errors.

  2. If this field is blank and Part I, Line 9 is blank, the total amount from Schedule J, Part I Total Column (h) and Part II Column (d), should be entered in Field 02-H. Otherwise, leave blank.

3.12.12.84.29  (01-01-2009)
Field 02-I
Tax on Taxable Distributions
11 Positions

  1. Field 02-I, Tax on Taxable Distributions,is located on Form 4720, Part I, Line 10.

3.12.12.84.29.1  (01-01-2009)
Field 02-I
Invalid Conditions/
Correction Procedures

  1. Correct any coding or transcription errors.

3.12.12.84.30  (01-01-2009)
Field 02-J
Tax on Unrelated Business Income
11 Positions

  1. Field 02-J, Tax on Unrelated Business Income, is located in Part I, Line 11 of Form 4720.

3.12.12.84.30.1  (01-01-2009)
Field 02-J
Invalid Conditions/
Correction procedures

  1. Correct any coding or transcription errors.

  2. This field is invalid if the Tax Period is prior to 200701. Delete Field 02-J if prior to 200701.

  3. Field 02-J will asterisk if Field 01-J is other than " 3" .

  4. If the Organization Code is not "3" there is an entry in Field 02-J and you cannot determine that the entry belongs in another field, SSPND 211.

3.12.12.84.31  (01-01-2009)
Field 02-K
Total Tax Part I
13 Positions

  1. Field 02-K, Total Tax, Part I, is located in Part I, Line 12 of Form 4720.

3.12.12.84.31.1  (01-01-2009)
Field 02-K
Invalid Conditions/
Correction Procedures

  1. If Field 01-J, Type of Organization Code, is "1" : Field 02-IJ computer is the total of Fields 02-A, 02-B, 02-C, 02-D, 02-E, 02-G, 02-H and 02-I.

  2. If Field 01-J is "2" : Field 02-I is the total of Fields 02-E, 02-F, 02-G, 02-H, 02-I and 02-S.

  3. If Field 01-J is "3" : Field 02-I is the total of Fields 02-B, 02-C, 02-D, 02-H, 02-I and 02-G.

  4. If "Section 170(f)(10)(F)" is written on the dotted portion of Part I, Line 8, of 1999 Forms 4720, enter the dollar amount from the dotted line portion of Part I, Line 8 to Field 02-G, Tax on Premiums Paid. Use Action Code "0" to clear the error register. Do Not send TPNC 05.

  5. Field 02-J will underprint if the transcribed and generated amounts≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Verify the Organization Code in Field 01-J is correct. See IRM 3.12.12.67.12. If Field 01-J is correct, send TPNC 05.

  6. Field 02-J will asterisk if it exceeds 13 positions. Verify the amount. If field does not have enough positions, see IRM 3.12.12.2.8.1.

3.12.12.84.32  (01-01-2009)
Field 02-L
Tax on Self Dealing
12 Positions

  1. Field 02-L, Tax on Self Dealing, is located in Part II-A, Column (c) of Form 4720.

  2. This field may be present if Field 01-J, Type of Organization Code, is "1" or "3" .

3.12.12.84.32.1  (01-01-2009)
Field 02-L
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "2" .

  2. Correct any coding or transcription errors.

  3. Check for notation "4720-A prepared" . See IRM 3.12.12.84 for instructions for Form 4720-A.

  4. If this field is blank and entries are present in Part II-A Col. (c), Line a, b, c or d, total the amounts and enter in Field 02-L.

3.12.12.84.33  (01-01-2009)
Field 02-M
Tax on Investments That Jeopardize
12 Positions

  1. Field 02-M Tax on Investments That Jeopardize, is located in Part II-A, Column (d) of Form 4720.

  2. This field may be present if the Field 01-J, Type of Organization Code, is "1" or "3" ;

3.12.12.84.33.1  (01-01-2009)
Field 02-M
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "2" .

  2. Correct any coding or transcription errors.

  3. Check for notation "4720-A prepared" . See IRM 3.12.12.84 for instructions for Form 4720-A.

  4. If this field is blank and entries are present in Part II-A, Col. (d), Lines a, b, c or d, total the amounts and enter in Field 02-M.

3.12.12.84.34  (01-01-2009)
Field 02-N
Tax on Taxable Expenditures
12 Positions

  1. Field 02-N, Tax on Taxable Expenditures, is located in Part II-A, Column (e) of Form 4720.

  2. This field may be present if Field 01-J, Type of Organization Code, is "1" or "3" .

3.12.12.84.34.1  (01-01-2009)
Field 02-N
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "2" .

  2. Correct any coding or transcription errors.

  3. Check for notation "4720-A prepared" . See IRM 3.12.12.84 for instructions for Form 4720-A.

  4. If this field is blank and entries are present in Part II-A, Col. (e), Line a, b, c or d, total the amounts and enter in Field 02-N.

3.12.12.84.35  (01-01-2009)
Field 02-O
Tax on Political Expenditures
12 Positions

  1. Field 02-O, Tax on Political Expenditures, is located in Part II-A, Column (f) of Form 4720.

  2. Field 02-O may be present for Type of Organization Codes "1" or "2" .

3.12.12.84.35.1  (01-01-2009)
Field 02-O
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "3" .

  2. Correct any coding or transcription errors.

  3. Check for notation "4720-A prepared" . See IRM 3.12.12.84 for instructions for Form 4720-A.

  4. If this field is blank and entries are present in Part II-A column (f) Lines a, b, c or d, add the amounts and enter the total in Field 02-O. Otherwise leave blank.

3.12.12.84.36  (01-01-2009)
Field 02-P
Tax on Disqualifying Lobbying Expenditures
12 Positions

  1. Field 02-P, Tax on Disqualifying Lobbying Expenditures, is located in Part II-A, Column (g) of Form 4720.

  2. Field 02-P may be present for Type of Organization Code "2" .

  3. Check for notation "4720-A prepared" . See IRM 3.12.12.84.

3.12.12.84.36.1  (01-01-2009)
Field 02-P
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "1" or "3" .

  2. Correct any coding or transcription errors.

  3. Check for notation "4720-A prepared" . See IRM 3.12.12.84 for instructions for Form 4720-A.

  4. If this field is blank and entries are present in Part II-A column (g) Lines a, b, c or d, add the amounts and enter the total in Field 02-P. Otherwise, leave blank.

3.12.12.84.37  (01-01-2009)
Field 02-Q
Tax on Excess Benefit Transactions
12 Positions

  1. Field 02-Q, Tax on Excess Benefit Transactions, is located in Part II-A, Column (h), of Form 4720.

  2. This field may be present if Field 01-J, Type of Organization Code, is "2" .

3.12.12.84.37.1  (01-01-2009)
Field 02-Q
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "1" or "3" .

  2. Correct any coding or transcription errors.

  3. Check for notation "4720-A prepared" . See IRM 3.12.12.84 for instructions for Form 4720-A.

  4. If this field is blank and entries are present in Part II-A, Column (h), Lines a, b, c or d, add the amounts and enter the total in Field 02-Q. Otherwise, leave blank.

3.12.12.84.38  (01-01-2009)
Field 02-R
Tax on Prohibited Tax Shelter Transactions
12 Positions

  1. Field 02-R, Tax on Prohibited Tax Shelter Transactions, is located in Part II-A, Column (i), of Form 4720.

3.12.12.84.38.1  (01-01-2009)
Field 02-R
Invalid Conditions/
Correction Procedures

  1. Correct any coding or transcription errors.

  2. Check for notation "4720-A prepared" . See IRM 3.12.12.84 for instructions for Form 4720-A.

  3. If this field is blank and entries are present in Part II-A, Column (i), Lines a, b, c or d, add the amounts and enter the total in Field 02-R. Otherwise, leave blank.

3.12.12.84.39  (01-01-2009)
Field 02-S
Tax on Taxable Distributions/
12 Positions

  1. Field 02-S, Tax on Taxable Distributions, is located in Part II-A, Column (j), of Form 4720.

3.12.12.84.39.1  (01-01-2009)
Field 02-S
Invalid conditions/
Correction Procedures

  1. Correct any coding or transcription errors.

3.12.12.84.40  (01-01-2009)
Field 02-T
Tax on Prohibited Benefits
12 Positions

  1. Field 02-T, Tax on Prohibited Benefits, is located in Part II-A, Column (k), of Form 4720.

3.12.12.84.40.1  (01-01-2009)
Field 02-T
Invalid Conditions/
Correction Procedures

  1. Correct any coding or transcription errors.

3.12.12.84.41  (01-01-2009)
Field 02-U
Total Tax Self Dealer Part II-A
12 Positions

  1. Field 02-U, Total Tax Self Dealer Part II-A, is located in Part II-A, Column (i) of Form 4720.

  2. Field 02-U is the sum of the amounts in Fields 02-L through 02-T.

3.12.12.84.41.1  (01-01-2009)
Field 02-U
Invalid Conditions/
Correction Procedures

  1. This field will underprint if the generated and the transcribed amounts are different and the return is on the error register for another reason.

    1. Compare the return with the error register amounts for Fields 02-L, 02-M, 02-N, 02-O, 02-P, 02-Q and 02-R and correct any differences.

    2. If there are no errors, check for a notation "4720-A prepared" . See IRM 3.12.12.67 for instruction for Form 4720-A.

    3. If there are errors, prepare amended Form 4720-A and send to non-Masterfile following local procedures.

3.12.12.84.42  (01-01-2009)
Field 02-V
Excess of Grassroots Expenditures
12 Positions

  1. Field 02-V, Excess of Grassroots Expenditures, is located in Schedule G, Line 1.

  2. This field may be present if Field 01-J, Type of Organization Code, is "2" .

3.12.12.84.42.1  (01-01-2009)
Field 02-V
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "1" or "3" .

  2. Correct any coding or transcription errors.

  3. If the field is blank, enter the amount from Schedule G Line 1.

3.12.12.84.43  (01-01-2009)
Field 02-W
Excess of Lobbying Expenditures
12 Positions

  1. Field 02-W, Excess of Lobbying Expenditures, is located in Schedule G, Line 4.

  2. This field may be present if Field 01-J, Type of Organization Code, is "2" .

3.12.12.84.43.1  (01-01-2009)
Field 02-W
Invalid Conditions/
Correction Procedures

  1. This field is invalid if Field 01-J, Type of Organization Code, is "1" or "3" .

  2. Correct any coding or transcription errors.

  3. If the field is blank, enter the amount from Schedule G Line 2.


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